Commissioner of Income Tax vs Grand Medico

The moot point fallen for consideration in this reference u/s 256(1) of the Income Tax Act, 1961 (hereinafter to be referred to as "the Act"), is whether the order refusing continuation of registration is appealable or not. In that background, in relation to the assessment year 1971-72, the following question has been referred to us for our opinion:

"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the Appellate Assistant Commissioner can entertain an appeal u/s 246(c) of the Income Tax Act, 1961, relating to the assessment year 1971-72?"

In our view, the law has now been settled by a series of decisions of this court holding that an order of the Income Tax Officer refusing continuation of registration is appealable in terms of Section 246(c) of the Act. That was the view taken in the cases of Madhur Jalpan Vs. Commissioner of Income Tax, and Commissioner of Income Tax Vs. Manuram Babulal, . There are other decisions also to the same effect. It is not necessary to state all of them. So far as this court is concerned, the law is settled that such an order as mentioned in the reference is appealable.

In that view of the matter, the question referred to us is answered in the affirmative, in favour of the assessee and against the Revenue. In the special circumstance, however, there will be no order as to costs.

Let a copy of the order be transmitted to the Assistant Registrar, Income Tax Appellate Tribunal, Patna, in terms of Section 260 of the Act.